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Grupo Argos Profits Hit by Covid-19 Grupo Argos Profits Hit by Covid-19 Source: Grupo Argos

Grupo Argos 3Q 2020 Net Profits Fall 85% Year-on-Year

Published in Companies Written by  November 13 2020 font size decrease font size increase font size 0
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Medellin-based multinational cement producer, electric power generator and airport/highways concessions giant Grupo Argos announced November 12 that its third quarter (3Q) 2020 profits plunged 85% year-on-year, to COP$77.8 billion (US$21 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) for 3Q 2020 likewise fell 39% year-on-year, to COP$857 billion (US$235 million). 

Company divisions include Cementos Argos, Celsia and Odinsa.

As for nine-months 2020, profits are down 83% year-on-year, to COP$166 billion (US$45 million), while nine-months 2020 EBITDA is down 25%, to COP$2.56 trillion (US$702 million), according to the company.

Consolidated revenues so far this year total COP$10.4 trillion (US$2.85 billion) “and grew 16% in September compared to April [2020] , the month most affected by the impacts of the pandemic,” according to Grupo Argos.

“The shock and austerity plan allowed it to achieve consolidated savings in operating expenses of more than COP$500 billion [US$137 million] at the end of the third quarter and to close with COP$1.6 trillion [US$439 million] in cash to face the challenges of the situation,” according to the company.

“During the [latest] quarter, there were non-recurring situations such as extraordinary contributions from the energy business to the Superintendency of Public Services and maintenance in the cement business that together amounted to more than COP$40 billion [US$10.9 million].

“It is also important to highlight that in third quarter of the previous year, Grupo Argos at a consolidated level recorded non-recurring income from the divestment of the Termoflores plant for COP$1.1 trillion (US$302 million),” the company added.

Colombia operations improved in 3Q 2020 versus 2Q 2020 “with the growth of 79% in the volume of cement shipped, the 18% increase in Celsia's power generation and 61% increase in vehicular traffic in Odinsa’s [airport/highway] concessions in the country,” according to Grupo Argos.

“Added to this performance is the robust liquidity position and the timely and solid financial management of the company, which have allowed it to maintain the confidence of the market and execute at the end of October a new transaction to exchange ordinary bonds for a total amount of COP$136 billion (US$37 million).

“This transaction was constituted as the first private debt exchange carried out in the country, representing a milestone in the Colombian capital market.

“So far this year, Grupo Empresarial Argos has issued debt for close to COP$600 billion (US$165 million) and expects to close the year adding debt totaling COP$1 trillion (US$274 million), remaining as one of the agents that enjoy the greatest confidence in the market and as a catalyst relevant to the country's economy,” the company added.

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